Hi all, Looking for some advice on what makes a good tax agent? I am based in Ashfield, Sydney. I own shares, do some share trading and own an investment property. I have used two different ones in the last 2 FY and it had been horrendous. Customer service is poor, their data capture form is inconvenient and creates more work for me to do just to get all my documentation in order. The agent keeps asking me to do a private ruling for any minor tax issue (ie. my share trading portfolio - he wants me to get a private ruling to determine if its CGT or trading loss).
Individuals: Creativity. Like a good mortgage broker or laywer. Not in a Lionel Hutz sort of way, but just creative in general about solving problems. Accounting as a profession can be every bit as creative / innovative as an artist, and that's what I look for in a good accountant / broker / lawyer. You need someone that looks at an impossible problem and says: I can find a solution, sure. Companies: Continuity. I want a company that can commit the same agent / lawyer / broker every time I see them. If I have a different person every time I visit, then I might as well visit a generic H&R Block or whatever. I absolutely loathe having the buck passed around. I want the same person every year otherwise why am I there? The moment I see the buck being passed, I think ok I'm done, I'm moving on next time. I hate this "team effort" BS. Stuff that, give me one professional and only one. I don't want to know about their 15 other colleagues.
Your heading says accountant yet the body says tax agent. These are 2 different things, but many tax agents are accountants. Probably not many accountants are tax agents though. I would want a tax agent that accurately claims all the possible deductions and advises me on how to save tax proactively without prompting. But you have to pay for this advice. I am neither a tax agent nor an accountant.
They got to be a true professional. Look at the office carefully. Look out for one of those pencil sharpeners with a crank handle. They are usually screwed down on a cabinet. Then check if they got one of those noisy adding calculators with that roll of paper at the top. Finally, make sure they don't look shifty. How big refund you want? Only 20% cut for new clients!
We have an accountant who is a tax agent. He has a law degree too although he is not registered and does not advise his knowledge of when to refer us is invaluable. We ring him before any major financial decisions and ask for his input. We have a standing appointment every April to make sure everything is in order before the end of the financial year. We “inherited” him when his boss retired some years ago and have known him since he started out as a junior. We have been account/clients now for decades. In the past we had businesses and were employers. Now we are retired and have shares and property. So what makes a good accountant? Someone who is always there for you ie answers the phone/email. Someone who always works in your best interests. Someone that you respect and value.
1. Listens 2. Explains - clearly. Not technical talk but in a way that you understand the reasons and options 3. Knowledge 4. Practical 5. Honest. Willing to say no. And explain the options and consequences. 6. Knows their boundaries. Will refer or seek a second view etc. Wise to ensure the client position is neither disregarded or compromised. 7. Resourceful - Likely uses technology and new methods to assist dealing with a busy practice as they are in demand. Our examples include a tax pack with checklists and extensive video guides and support and our client portal for file upload/download and signing with a simple click - No software or app to install. Accessable anywhere in the world where there is internet. . We also back that with a contact guarantee. I personally avoid "messages" and will speak to a client if free. Clients hate delayed replies. I worked for a guy who was the worlds worst at replies.
Of Paul@PFI’s list, “Knowledgeable” is #1, closely followed by “Knows their boundaries”. Do many accounting firms operate with either an in-house legal service, or some “relationship” with a legal firm? I’ve always thought that would be beneficial to the client.
Some do but different lawyers do different things. There are gurus on tax matters and then others on state tax. etc. And a blindingly wise tax barrister is not going to necessarily be best in a high leveltax taskforce settlement but may be a gun in a escalated dispute. I was getting tired of them dying (the best I found) or being struck off (YES ! ) and now do use a national firm as they can pass matters between their best partners in each field or even share a matter. Mike A put me on to them
i have them found to be absolutely superb. not cheap but it means you can advise on any matter (and outsource what needs to be - eg legal stuff). stamp duty for every state as they have a presence in each state, FIRB, international tax, buy/sell agreements, option agreement, wills, development agreements (crucial in Vic). Every client I have worked together with on matters with them has been highly impressed. And they have a team of people who have previously worked at senior levels in the ATO so they know what to look out for and the tips and tricks. That's crucial sometimes. I've had some massive wins for clients using them on heaps of matters.
That can be a concern as neither lawyers or accountants are qualified to give credit and financial advice and arent trained to do so. His guidance is likely personal advice but may also be general advice that could also remain a concern. Certainly not insured. Many frauds occur this way through building a false position of trust (eg Caddick - Maliver) and accountants have been known to do this a lot. Unqualified and unlicensed financial advice perhaps ? I am often asked all sorts of questions that concern credit and financial advice and am quite careful not to advise as my opinion may sway a decision. Examples of issues I regular am asked that I wont answer : - Should I buy A or B property ? I provide all the resources for the taxpayer to evaluate the financial issues with each. Happ to discuss tax outcomes eg net after tax cashflow. Otherwise my opinion is irrelevant. - Investment choices. That is certainly financiala dvice. Happy to guide tax issues, record keeping etc. - Should I sell ? Instead I guide on expected net equity that is released (ex CGT and debt) and the imapct on future tax returns - Should I contribute to super, open a smsf and much more ? This requires a AFSL. I will present the issues, risks and costs in general terms as many people will then realise their super is inadequate for a borrowing or discuss contribution caps in general terms. Many are unaware of ways to exceed the $25K cap too - How can I avoid child support payments. Its the way out of my office. - How can I avoid tax by using a offshore company. - How to hide or move assets from a spouse. That is a legal issue and also unethical. I agree someone who is there and available is very important. All clienst have my direct email. I reckons its #1 reason why many are annoyed by a former adviser. They cant be reached. At best they speak to a junior etc. I always take client calls and avoid messages where possible. My mobile number is on my card. Does not occur often but I have been called on a Saturday prior to an auction pucrhase !!
I think the most important one is the person sitting on the other side of the desk listens to you .. We have had several Accountants ,three as now dead,one we never went back too after he said something to my ''Wife'' of over 35 years and as my wife is Asian and he told a joke about Ladies that through no fault of their own work in go--go fast buck front bar's in Asia.. The Lady we use now i can ring anytime,we go in late march each year everything is prepared ,all i have with me is the rates-insuranes -and any maintence and the statements from Comsec a bit over an hour pay the bill in cash and walk out the door..
I realise one quality to overlook is spelling But one failing in many accountants (or common to professionals) is inability to articulate a complex issue in plain english that a lay person can understand. Accountants are reknown for it and I had a former mentor who trained me very well in not doing that. Together with experience in sales and management it helps. Its something I learned a long long time ago. Many accountants are good on knowledge but just aweful at explanations. They explain all the rules, the issues and the choices like its a contest to cram as much technical stuff into 1 hour. Simplify it. Ensure the client knows what the options are and guide them. Make sure that they understand why their choice is the right one. And why any alternative isnt the best. They will always understand why they made their own choice. I hate hearing from clients about things they dont understand. Its my job to make sure they have some basic understanding.
